Completion of financing signals start of US$ 1 billion project to create the largest independent power plant in Africa and the Middle East
Zurich, Switzerland, September 12, 1997 - ABB, the international electrical engineering company, is to start construction of a private 700-megawatt (MW) coal-fired power plant at Jorf Lasfar, Morocco. The total project investment is valued at approximately US$ 1 billion, of which ABB’s contract to build the plant is valued at US$ 620 million. The order was placed by a 50/50 joint venture between ABB and CMS Generation, the independent power production subsidiary of CMS Energy Corporation, Michigan, U.S.A.. The new plant will be built adjacent to an existing 660-MW plant, doubling the capacity of this major base-load facility to 1360 megawatts. Power from the two plants will be sold under a 30-year agreement to ONE, the Moroccan national power utility.
ABB will supply two 350-MW steam turbine-generator sets, two coal-fired boilers, the control system, and the balance of plant equipment. Units of ABB Financial Services served as financial advisers to the IPP and participated as co-arrangers of the project’s debt financing. Installation of the first of the new turbines is scheduled to be completed by June 2000, and the second by December 2000.
Leading the construction of the new power plant will be ABB companies in Germany, Italy, Switzerland and the U.S., members of ABB’s global Power Generation Segment which employs more than 43,000 people worldwide with orders in 1996 of over US$ 10 billion. The ABB Group employs approximately 216,000 people with orders in 1996 of US$ 36 billion. (End)